Trading Forex for a Living
So you’re thinking of trading Forex for a living are you? Ok cool, well this article will give you a brief outline of the things you need in order to be successful. We will talk about both the technical side of things and the psychological aspects you will need in order to give trading Forex for a living a proper go.
In this Article:
- Why do People trade Forex for a Living?
- What Tools do you need?
Why do People trade Forex for a Living?
This one might seem obvious…..It’s for the Money! We all have different motivations for why we want to trade Forex for a living but 99.9% it’s got something to do with making money. Maybe you want to make a little bit more pocket change or maybe you want to have your own private jet.
I’m not going to lie, when I got into trading it was because I wanted to make bucket loads of cash and travel the world doing it. What actually happened was I started making a few buck and was hooked for life. I mean the kind of hooked that has literally made me completely unemployable. I now trade because I obsessively love it and it is a part of my self-identity.
Lots of people have heard the stories about people coming to the Forex market and making a killing overnight. Maybe one of those stories is what set you out on your journey to trading Forex for a living. But what I would say is that if those stories are true then what they have forgotten to mention are the parts about the years of hard work and struggle it took to finally make it to the top.
What Tools do you need?
If you are serious about trading Forex for a living then you are going to have some monthly expenses to do it properly. Trading is just like any other business and should be treated like one. However, you have the extra added benefit of not needing employees or office space to make it work. But there are a few expenses that any accomplished trader will have to get and remain profitable.
The major benefit of trading for a living is that you can be a nomad. You can literally trade from anywhere in the world as long as you have a stable internet connection and a laptop computer. And for many people this is a very desirable option to have.
Here are the basic things you will need to get started.
Ahhhh…..Education. This is a big subject to consider. Do you go the route of trying to find everything for free online in forums or chat groups or do you invest in your trading future and purchase a training package?
Currently, the best place to get in depth education for free is the Baby Pips School of Pipsology They do a really good job of delivering the basics. If you know nothing about Forex trading then this is probably the best place to start your learning journey.
At some point you are going to need define yourself as either a technical trader or a fundamental trader or both. I found a mix of 80% fundamentals and 20% technicals works best for me but everyone is different. But it’s good to have an open mind.
If you want to go the route of technical trading then Traders Support Club is the preferred educator of the Two Blokes. They offer an in depth training with a community to enhance your learning.
If you are thinking that you want to trade Fundamentals then Jarratt Davis is one of only a few guys teaching this. He has an excellent training program with full support and daily analysis.
I personally think every trader needs a well-rounded education and should consider investing in both fundamental and technical training. This will help you understand the markets from both the retail (technical) and institutional (fundamentals) side of the Forex market.
Broker and Trading Account:
Next, in order for you to actually place trades in the Forex market you are going to need a trading account with a reputable broker. Right now the Two Blokes preferred broker is XTB. They have a wide range of trading products, excellent execution, and simple account opening. And because XTB loves the Two Blokes they have given our community a special offer that you can’t find anywhere else. Check it out HERE.
Once you sign up with XTB or another broker of your choice (check out our broker review page HERE.) you then need to download and install the Meta Trader 4 platform. Some brokers offer multiple different platforms to trade on but MT4 is the gold standard. It’s a simple to use but powerful platform that will do everything you need. And if you are into algorithms MT4 has its own programming language that is used by millions of people worldwide.
If you have not used MT4 before then I would say try using a demo account first so that you can learn how to use the platform properly. Then once you are comfortable start trading your live account.
You have a couple routes here. You can go the premium route and pay a monthly fee to a company such as Ransquawk. This is a real-time news and audio squawk service that does all the heavy lifting for you. They do a rundown of all market moving news events and provide instant analysis from some of the best analysts in the business. You can read a full article of all the benefits HERE. And if you sign up make sure to mention Two Blokes Trading and they will give you a 10% discount HERE.
Your other option is to get your information from free websites. The information will not be instantaneous like Ransquawk and you will have to do a lot more digging to find the information you need to make informed trading decisions, but they are a good place to start. There are a lot of sites out there but some of the best are the following:
Trading Plan and Journal:
If you don’t have a trading plan and a method to track it then I’m not really sure why you would even bother trying to make trading for a living work. Boom, I said it! Could you imagine if companies like Apple or Amazon didn’t have a business plan on how they were going to grow their businesses and track their results? Do you really think they just start making things without thinking about how or what they should be doing? This sounds ridiculous but the sad fact is that most people don’t give the business of trading the proper respect it deserves.
First you need to make your trading plan. This should come from your education that we touched on earlier. Your trading plan should have things such as your strategies (obvi!), risk and money management, and follow up.
The next things you need to do is start trading your plan and then have a trading journal that you can use to track your results. This will help you follow up on anything you might need to adjust. The best way to go about making this a simple and easy process is by getting yourself the Edgewonk Trading Journal. This is by far the best journal on the market, it’s very affordable and will be daily staple in your trading business success. They also have a trader development program which will enhance your learning experience.
There you have it. All the basics that you need to get started trading Forex for a living. Now the rest is up to you to do the work and put in the time. Look, trading for a living takes a lot of hard work, passion, and dedication to make it work. You are definitely going to have to stretch yourself and be committed to making it work even in the times where you feel like you have no idea how to actually do that. BUT, if you do stick it out and give it your all, the rewards at the other end of your hard efforts are definitely worth it…..BIG TIME! If you treat trading with the massive amount of respect and dedication it deserves then you too can live the dream of trading Forex for a living.